Why is Linode way more expensive:D?

Question

I am comparing cloud providers (other than big tech ones AWS, Google, etc.) and I don't understand why is Linode is way expensive than the EU cloud providers.I am benchmarking the closest dedicated server option to this &bull; 2 CPU cores &bull; 4GB RAM &bull; 96 SSD &bull; 4 TB transferLinode: $36, 2 cores, 4 GB RAM, 80 GB SSD, 4 TB transfer limit, 40/4 GbpsHetzner: 45 euro, 6 cores, 64 GB RAM, 1 TB ssd, 20TB, 1GBitOVHCloud: &pound;50, 6 cores, 32 RAM, 1TB SSD, unmetered, 1GBitScalaway: 40 euro, 4 cores, 32 GB RAM, 750GB SSD, unlimited, 300MbpsSeems that EU cloud providers provide much better value for money, but I don't see why is it the case.

adamcharnock · Accepted Answer

I only have partial information here - and that is that I&rsquo;ve heard connectivity is generally much cheaper in the EU. And I can see why too: denser population, smaller distances between population centres, close to other continents.But I&rsquo;d be interested in any other reasons people can give.

sshine · Answer

I suspect Linode's cost of operation is simply higher.
I did some CPU and disk benchmarking of VPS'es 10+ years ago and found that vCPU effective performance varies a lot.
But that does not account for the difference in cost for dedicated machines, like you investigate.

maicro · Answer

Another guess - just comparing Linode and OVHCloud quickly, my guess is that Linode focuses more on multi-VPS systems, while OVHCloud has a larger fleet of dedicated servers. If you have limited rack space and an existing fleet of servers, my guess it would be easier to provide multi-VPS systems than dedicated; that's assuming and implying a _lot_ of history on how Linode has developed (and apparently been bought by Akamai back in 2022...), but could be one "practical" explanation for the different pricing for dedicated servers - VPS pricing between Linode and OVHCloud is much closer.

djaouen · Answer

Because when traffic spikes on your VPS, they don't black hole all the traffic like some other services lol

hombre_fatal · Answer

Why is this piece of string longer?

Why is Linode way more expensive:D?

I only have partial information here - and that is that I’ve heard connectivity is generally much cheaper in the EU. And I can see why too: denser population, smaller distances between population centres, close to other continents.But I’d be interested in any other reasons people can give.

I suspect Linode's cost of operation is simply higher.I did some CPU and disk benchmarking of VPS'es 10+ years ago and found that vCPU effective performance varies a lot.But that does not account for the difference in cost for dedicated machines, like you investigate.

Because when traffic spikes on your VPS, they don't black hole all the traffic like some other services lol

Why is this piece of string longer?

I only have partial information here - and that is that I’ve heard connectivity is generally much cheaper in the EU. And I can see why too: denser population, smaller distances between population centres, close to other continents.
But I’d be interested in any other reasons people can give.

I suspect Linode's cost of operation is simply higher.
I did some CPU and disk benchmarking of VPS'es 10+ years ago and found that vCPU effective performance varies a lot.
But that does not account for the difference in cost for dedicated machines, like you investigate.